Confidentiality Clauses in Separation Agreements: State and Federal Laws Make the Legal Landscape More Restrictive for Many Employers

• January 30, 2026

• Jonathon A. Rabin , Hall Render Killian Heath & Lyman PC

Employers frequently offer severance agreements to employees under various circumstances—whether in implementing reductions in force, the separation of a single troublesome employee, or even more routine dismissals. Such agreements commonly include confidentiality clauses to prevent the departing or departed employee from disclosing the terms of the agreement and negotiations over it, the circumstances of their departure, other employee personnel issues, and sometimes information about patients, customers, and/or business strategies. Increasingly, state and federal laws present barriers to such confidentiality clauses. This article summarizes key terms in various state laws, but it is important to review all terms and exceptions before preparing and entering into an agreement containing confidentiality obligations. Especially for attorneys with multi-state practices, close scrutiny of state law is important.

ARTICLE TAGS

• Labor and Employment Practice Group
• Labor and Employment